If you’re enrolled in a qualified high-deductible health plan (HDHP) and have a Health Savings Account (HSA), you can maximize your savings with an HSA-Compatible or Limited Purpose Flexible Spending Account (LPFSA).  

Read on to find out how to use your LPFSA funds, or jump to a section with these links:

  1. What is an LPFSA?

  2. LPFSA eligible expenses

  3. How is a Limited Purpose FSA funded?

  4. Who can use my LPFSA funds?

  5. LPFSA maximum yearly contribution limits

  6. Calculate my LPFSA tax savings?

What is an LPFSA?

An HSA-Compatible or Limited Purpose FSA works with an HSA to maximize your savings. 

  • This pre-tax benefit account helps you save on this plan year’s eligible out-of-pocket dental and vision expenses while taking advantage of the long-term savings power of an HSA. 

  • You decide how much to contribute to your LPFSA, and funds are withdrawn automatically from each paycheck for deposit into your account before taxes are deducted.  

  • The total amount you elect to contribute to your LPFSA each year is available on day one of your plan year.

LPFSA eligible expenses 

You can use your Health Savings Account (HSA)-Compatible or Limited Purpose Flexible Spending Account (LPFSA) to pay for dental and vision care products and services for you, your spouse, and your dependents.

The IRS determines which expenses are eligible for reimbursement. You can view a comprehensive list of eligible expenses by logging into your account. 

Search LPFSA eligible expenses.

How is a Limited Purpose FSA funded?

You fund your Limited Purpose FSA through your employer. During your company's Open Enrollment period, you tell your employer how much you would like to contribute to your account for the coming year. The maximum amount you can contribute is determined by the IRS. Your employer then deducts your contribution amount (in equal portions) from your paychecks throughout the plan year.

You don't have to wait for funds to build up in your Limited Purpose FSA. Your entire annual election amount is available to you on the first day of your plan year.

Who can use my LPFSA funds? 

You can use your LPFSA funds for qualified dependents.

Your Health Savings Account (HSA)-compatible or Limited Purpose Flexible Spending Account (LPFSA) covers qualified dental and vision expenses for you and your eligible dependents.

  • Eligible dependents include a spouse, children under the age of 26, and children over age 26 who are tax dependents.

  • Domestic partners are eligible if they qualify as tax dependents. 

LPFSA maximum yearly contribution limits

The IRS sets the annual contribution limits for Health Savings Account (HSA)-compatible or Limited Purpose Flexible Spending Accounts (LPFSAs).

You can contribute up to $3,050 in 2023 for your Limited Purpose FSA dental and vision needs. 

Note: A different limit may apply to you according to your employer’s plan.

Calculate my LPFSA tax savings? 

An LPFSA lets you pay for qualified dental and vision care expenses on a pre-tax basis. 

The money you contribute to a Health Savings Account (HSA)-Compatible or Limited Purpose Flexible Spending Account (LPFSA) is not subject to payroll taxes, so you end up paying less in taxes and taking home more of your paycheck. 

  • Use this calculator to estimate your annual eligible expenses and determine an annual HSA-Compatible or Limited Purpose FSA election amount that’s right for you and your family. 

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